The following is a summary of the Central Garden & Pet Company (CENT) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Central Garden & Pet reported a Q2 GAAP EPS of $0.93 and non-GAAP EPS of $0.99, both increasing year-over-year.

• Net sales were slightly lower than the previous year, at $900 million.

• Non-GAAP gross profit increased by 8.4% to $281 million, and the non-GAAP gross margin improved by 270 basis points to 31.3%.

• A slight increase was observed in the non-GAAP SG&A expense, rising by 1% to $183 million.

• Non-GAAP operating income rose year-over-year to $99 million from $78 million in Q2 of the previous fiscal year.

• The effective tax rate for the period was reported at 23.4%, down slightly from 23.9% in the prior year.

Business Progress:

• The company realized growth in e-commerce sales and expanded market share across multiple pet and garden categories.

• Efficiency improvements were reported across the organization due to progress in the cost and simplicity program.

• Central Garden & Pet expects to realize significant savings and efficiencies by having consolidated four distribution locations into one.

• Strategic investments in brands, digital capabilities, and consumer insight are anticipated to fuel further growth.

• The company noted that it has eliminated 5,000 SKUs, primarily low-margin products, optimizing its product assortment.

• Investments have been made specifically in counter-seasonal business categories to mitigate against weather-related risks.

• Although pet durables have declined, the company expects a rebound and eventual growth in FY '25.

More details: Central Garden & Pet IR

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